Finance minister Nirmala Sitharaman defended the government’s decision to ban export of certain products, such as onions, arguing that it was essential to protect the interest of domestic consumers, while asserting that the economy was on the right track.
“We have prioritised balancing the interests of farmers and consumers. Often, there’s a situation when prices go up, you need to have supply-size constraints removed and increase purchases, for the consumer’s sake. Even during this time, we are equally conscious that the price at which we procure from the farmers is adequate,” she said, while responding to the debate on supplementary demand for grants in the Lok Sabha. The demand for grants was passed by the Lower House.
The declaration was made in response to protests by a significant section of Nashik traders, and days after the government banned onion exports—a problem brought up by NCP lawmakers in the Lok Sabha. The action was taken in response to the politically sensitive kitchen staple's growing costs. According to Sitharaman, the government has boosted funding for agriculture and expedited procurement over time.
The FM also said India remained the fastest-growing major economy. “Our economy is moving in the right direction... Macroeconomic fundamentals are fine. We have become the fastest-growing economy. Second quarter growth of 7.6% is the highest in the world,” she said. Sitharaman said fiscal prudence was a key priority for the government, without compromising on social welfare.